The Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on Paytm Payments Bank and Rs 2778750 on Western Union Financial Services Inc., a multinational company providing cross-border money transfer services, under the Payment and Settlement Systems Act 2007.
In a statement issued here today, the central bank said that on scrutiny of the application made by Paytm Payments Bank for issuance of final certificate of authorization, it has been found that the information furnished is not factual. After this a notice was issued to the bank and after the response received on it, this penalty has been imposed on it.
RBI said that this penalty has been imposed for violating the limit of 30 remittances per beneficiary during the years 2019 and 2020 of Western Union Financial Services. This penalty has been imposed on him under the master guidelines of the Money Transfer Service Scheme.